Gender diversity on the boards of Australia’s largest companies has not yet hit the established 30% target.
The Australian Institute of Company Directors (AICD) has revealed that as at the end of June 2019 women represented 29.7 per cent of directors on ASX 200 boards. This is just below the 30% target established by the AICD in 2015, that was meant to be achieved by the end of 2018.
While gender diversity on these boards has climbed by more than 10 per cent since 2015, this growth was not enough to meet the target and the numbers have not changed since December 2018.
AICD Chief Executive Officer and Managing Director, Angus Armour said it was disappointing to see gender diversity progress stalling on ASX 200 boards.
“While gender diversity on boards is not sliding backwards, the figures haven’t shifted since December 2018 and clearly more work needs to be done,” he said.
“Boards struggling with gender diversity should ask themselves if their search processes are effective and competitive enough to access the large talent pool of female directors in Australia.The AICD will continue to advocate strongly on gender diversity.”
In 2019, the percentage of female appointments to ASX 200 boards is 29.1 per cent.
The push for the 30 per cent target has been hindered by four ASX 200 companies that still have no women at all on their boards in June 2019. HUB24 Limited, NRW Holdings Limited, Emeco Holding Limited and TPG Telecom Limited are the four companies named by the Australian Institute of Company Directors.
Research shows that companies with strong diversity have better competitive performance, talent management and risk mitigation. Further, women having a strong voice in the boardroom consistently translates to better financial performance.
Earlier this year, Future Super became the first super fund to completely exclude investments from companies that have no women on their boards.